Exsim Development Sdn Bhd (EXSIM) has clarified that its property development arm will not be merged into Pan Malaysia Holdings Bhd (PMHB), despite the acquisition of a significant portion of the latter's shares by the Lim brothers.
The Lim brothers are set to acquire a 65.9 per cent stake in PM Holdings through Exsim Hospitality Holdings Sdn Bhd for RM36.73 million.
Exsim Hospitality is 25 per cent owned by Lim Aik Fu, with his elder brothers, Lim Aik Hoe and Lim Aik Kiat, holding the remaining shares in equal parts.
In a statement released today, EXSIM emphasised that it has no affiliation with Exsim Hospitality, despite the common shareholders between the two companies.
"It is not the intention of the shareholders to inject the property development business of EXSIM into PMHB," it said.
PM Holdings, linked to businessman Tan Sri Khoo Kay Peng, has attracted takeover interest since its divestment of stockbroking and asset management businesses in November 2023, fetching RM90 million collectively.
The company presently owns the 10-storey Corus Paradise Resort in Port Dickson and its adjacent land, with the hotel holding a book value of RM34.83 million as per last year's annual report.
According to a spokesperson from EXSIM, the share acquisition in PM Holdings is part of a larger strategy to expand its hospitality business.
The property developer has been venturing into short-term accommodations in the KLCC area since 2018–2019, the spokesperson said.
"EXSIM aims to grow its short-term stay business, seeing significant potential in this real estate segment. The group plans to refurbish Corus Paradise Resort later this year and convert its rooms into Airbnb-style accommodations. Port Dickson has the potential to provide this kind of accommodation," the spokesperson told Business Times last week.
PM Holdings' listing status will be retained on Bursa Malaysia.